With the probe into manipulating foreign exchange rates reaching its first conclusion almost half a year ago, Deutsche Bank is reportedly in the process of finalizing its litigation costs related to LIBOR.
The London Interbank Offered Rate (LIBOR) has allegedly been manipulated by traders of the German mega bank. According to recently leaked discussions between U.S. federal prosecutors and U.S. and U.K. regulators with Deutsche Bank, a settlement to the tune of $1.5 billion is in the works.
According to information from the leaks, the end of the LIBOR saga for Deutsche Bank may be near, as discussions could be concluded by the end of the month. In a rare occurrence, the final deal could include a criminal guilty plea by the German bank’s subsidiary in the United Kingdom, according to sources cited in recent media reports.
NEXT BLOCK SOFIA 2.0 + Fabulous Blockchain After-PartyGo to article >>
A number of globally operating banks have been hit by a slew of fines and settlements related to alleged manipulation of a number of LIBOR rates. The benchmark is set in London and is used to determine the interest rates on trillions of dollars of financial products, including loans, mortgages, credit cards and derivatives.
The LIBOR fixing scandal engulfed the German bank in January 2013. At the time, the biggest financial institution in Germany announced that it was setting aside about €1 bln for future litigation costs.
Unfortunately for shareholders of Deutsche bank, the legal challenges for the company do not end here, as it is still facing charges related to manipulation of foreign exchange rate fixings and violations of U.S. sanctions against a number of countries.